Mandatory Licensing
General Licence Information
Local authorities have had powers over Houses in Multiple
Occupation (HMOs) for decades, but under the 2004 Act the licensing
of many 'high risk' HMOs will be mandatory. Mandatory Licensing
will cover HMOs which comprise three or more storeys, five or more
unrelated occupants which form two or more households, and sharing
of a facility such as kitchen, bathroom or a common living
room.
The licence will run for five years. It will be an offence to
operate a licensable HMO without a licence and conviction carries a
maximum fine of £20,000. While the Local Authority is processing an
application then no offence is being committed.
The Licence holder
The licence holder must be deemed by the Local Authority to be a
"fit and proper person". If the Landlord is found not to be a fit
and proper person he may be required to appoint a competent manager
as the licence holder. If no competent person is offered then the
Local Authority must issue a Management Order and take over the
management of the property until a suitable licence holder can be
arranged.
Licence conditions
The Local Authority may place conditions on the licence relating
to the levels of occupation, behaviour of tenants, provision of
safety certificates e.g. gas and electrical safety. The Local
Authority may also require that a landlord undertakes a training
course on managing HMOs in accordance with good practice.
If landlords feel that the refusal of a licence is unreasonable,
or that the conditions are, they may appeal to a Property
Tribunal.
The Local Authority may issue a licence prior to an inspection
of the HMO but the property must be inspected as soon as possible
after the issue of the licence.
Licence cost
The HMO licensing scheme is to be self-funding and a fee will be
required for a licence application.
A breach of the licence conditions will render the landlord
liable on conviction to a maximum fine of £5,000.
Exemption Orders for up to six months can be issued if the
landlord decides to change an HMO from licensable to
non-licensable.